Now Reading: US wholesale inflation slows to 4.7% in July
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US wholesale inflation slows to 4.7% in July
US wholesale inflation cooled in July, with the producer price index (PPI) rising 4.7% from a year earlier, down from 5.5% in June, the labour department said. Month-on-month, prices were flat after…
The Story in Brief
US wholesale inflation cooled in July, with the producer price index (PPI) rising 4.7% from a year earlier, down from 5.5% in June, the labour department said. Month-on-month, prices were flat after a 0.1% fall in June. Core PPI, excluding food and energy, eased to 4.2% annually from 4.7%.
The data follows a modest cooling in consumer inflation, though household budgets remain under pressure as consumer prices rise faster than wages for the fourth straight month. The Federal Reserve, which has left rates unchanged this year, is expected to weigh the figures at its September meeting. Economists predict the Fed’s preferred measure, core PCE inflation, will stay around 3.3% for July when released on August 26.
The Indian Opinion
Talk of a Fed pivot is premature. One soft PPI print does not undo a year of sticky inflation, and renewed fuel cost spikes could reverse the trend by August. The real test is the August 26 PCE reading: if core inflation stays above 3%, the rate-cut narrative is just wishful thinking. Will ordinary Indians betting on a softer dollar get their wish or a rude shock?
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
